The research should be read in the context of the current economic environment which has presented enormous challenges to the corporate world in general and not just private equity. Given we have just been through some of the most difficult years since the industry grew in prominence over the last twenty years, we see the feedback overall as very supportive.
The majority of those surveyed rated the quality of the private equity director’s involvement in the business as good or excellent. However, with 41 percent rating the quality of private equity input as average or poor, there is clearly room for improvement and the respondents had a number of suggestions on how it could be done better.
Effective ways of working
- Have a very open and honest dialogue – especially with regard to exit strategy.
- Have either operational understanding or access to advisers with relevant experience.
- Allocate sufficient time and input to the strategic planning process.
- Spend more time on the business, not just at board meetings.
- Truly understand the business, the competitive landscape and influences – not just the numbers.
- Cut back on the number of performance indicators requested and quickly identify the key levers.
- Have fewer private equity professionals and more independent directors on the board.